Precious metals close mixed

GOLD futures have ended slightly lower as investors weighed the continued demand for physical gold against brighter economic data, which could curb interest in gold over the longer term.

The most actively traded contract, for June delivery, settled down $US3.40, or 0.2 per cent, at $US1,464.20 a troy ounce on the Comex division of the New York Mercantile Exchange. The contract is up 0.7 per cent on the week.

Gold had plunged to $US1,455.40 a troy ounce after monthly data showed consistent growth in the US labour market.

US employers added 165,000 jobs in April, surpassing forecasts of a 148,000 increase. Data for the past two months also were revised higher.

Gold traders closely follow jobs reports as the Federal Reserve said it will roll back supportive monetary policies once the labour market strengthens.

Some investors worry that demand for gold will languish in the absence of these measures.

"They worry that the Fed is going to curtail (bond buying) if the economy seems to be improving," said George Gero, senior vice president at RBC Capital Markets Global Futures.

However, gold pared its losses, briefly peeking into positive territory, as investors in both futures and physical markets sought out bargains.

"People looked at this as a chance to get in and buy gold at discounted prices," said Matt Zeman, a senior commodity strategist with Kingsview Financial.

Gold prices have garnered a lot of support from investors who buy physical bullion and coins in recent weeks. After gold's record two-day rout in mid-April slashed prices by about $US200, these buyers rushed in to the market, helping prices recover by 7.6 per cent.

"There is a modicum of physical interest that's been supporting the market," said Bill O'Neill, a principal with Logic Advisors.

"There's been good buying out of India, good buying out of Hong Kong, and that's been cushioning prices over the last few days," he added.